Tenant not paid GST, Information for ITC claim by tenant can not asked from GST department by owner : AAR

By | September 12, 2021
(Last Updated On: September 12, 2021)

Facts of the case

Petitioner has been charging Service Tax/GST at the rate of 18% on the monthly rent, but Respondent No. 1 has not been paying the said taxes. Notwithstanding the said default, Petitioner has been regularly depositing the taxes with the tax department. Our attention is drawn to the tabulation in the petition, enumerating the monthly rent invoices for the period from November 2012 to June 2020. The said table captures the bill amount, Service Tax/GST component and the balance amount due and payable by Respondent No. 1 against each invoice. It is argued  that even though Respondent No. 1 has discharged the liability towards the rent amount, but the taxes levied on the invoices are outstanding.

Keeping in view the scheme of taxation, Respondent No. 1 in all likelihood would have taken credit of the Service Tax/GST deposited by the Petitioner with the tax department. However, despite taking credit, Respondent No. 1 has not reimbursed the taxes and therefore the availment is unauthorised. In order to verify this position, Petitioner issued legal notice dated 20th May, 2020 to Respondent No. 1 and requested them to provide Tax returns. Despite the service of the notice there has been complete silence making it evident that credit of Service Tax/GST has been availed.


Decision of Court

Petitioner is also unable to show any provision of law that puts an obligation on the tax department to furnish the information for which the mandamus is being sought. In case the petitioner has no such legal right, the prayer cannot be granted. We find no merit in the petition and the same is dismissed.


To get judgment at nominal price email Taxheal@gmail.com with case No 122 Taxheal.com 142

Category: GST

About CA Satbir Singh

Chartered Accountant having 12+ years of Experience in Taxation , Finance and GST related matters and can be reached at Email : Taxheal@gmail.com

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